Solar Guide

Net Billing Policy in Pakistan 2025 | NEPRA Prosumer Guide

Introduction

The Net Billing Policy in Pakistan has become one of the most discussed topics in the solar industry, especially after the release of NEPRA Prosumer Regulations 2025. With power shortages, rising electricity tariffs, and increasing reliance on grid energy, thousands of households and businesses are now moving toward solar energy solutions—but the new framework of net billing has raised questions about future return on investment.

This blog explains everything you need to know:
✔ What is Net Billing?
✔ How does it differ from Net Metering?
✔ What are NEPRA Prosumer Regulations 2025?
✔ What is the new ROI timeline?
✔ And why MFES Solar Energy is your best partner in this transition.

What Is Net Metering? (2015 – 2024 Framework Recap)

Net Metering was officially introduced in Pakistan in 2015. Under this system, imported and exported electricity units were adjusted on a one-to-one unit basis, offering maximum benefit to consumers.

Why Net Metering Became Successful

  • Unit-to-unit export adjustment

  • Very fast ROI (around 2 years)

  • Transparent billing

  • Massive financial benefit for consumers

Due to this policy, Pakistan achieved approximately 6.1 GW solar installation capacity, making it one of South Asia’s fastest-growing renewable energy markets.

Why Net Billing Policy Was Introduced

The rapid growth of distributed solar systems created several challenges:

  • Imbalanced grid planning

  • Revenue losses for power utilities

  • Unstable energy flow

  • Too fast ROI (which was financially tough for the power sector to sustain)

To maintain system stability and sector sustainability, the Government and NEPRA introduced a new billing model: Net Billing.

Longi solar panels used in 5KW system Pakistan

What Is Net Billing Policy in Pakistan?

Net Billing, under NEPRA Prosumer Regulations 2025, is a billing mechanism where exported electricity is paid in money instead of unit-to-unit adjustment.

You Become a “Prosumer”

A prosumer is someone who:

  • Consumes electricity from the grid

  • Generates electricity from a renewable source (such as solar)

How Net Billing Works (Process Explained)

At the end of each 30-day billing cycle:

  • Imported electricity (kWh) = billed at your consumer tariff

  • Exported electricity (kWh) = purchased at national average energy purchase price

  • Excess amount = adjusted in the next invoice or paid quarterly

This system:

  • Reduces grid stress

  • Improves billing transparency

  • Ensures fair distribution company payments

NEPRA Prosumer Regulations 2025 – Major Features

Key highlights of the 2025 solar policy:

Capacity & System Rules

  • Solar capacity cannot exceed sanctioned load

  • Systems up to 1 MW are allowed

  • Load flow study required for 250 kW+ systems

  • Contract validity: 5 years, renewable

Metering System

  • Bidirectional / dual meter system

  • Accurate two-way energy recording

Billing & Payment

  • Export payment available quarterly

  • Monetary settlement instead of unit offset

On-grid solar system installation by MFES Solar Energy

Net Billing vs Net Metering – Comparison Table

AspectNet MeteringNet Billing
Adjustment TypeUnit-to-UnitMonetary
Export RateEqual to import rateNational average energy price
ROI Timeline~2 years~4 years
Grid ImpactHighBalanced

Even though ROI increases under net billing, solar is still one of the most profitable long-term solutions in Pakistan—especially with increasing electricity tariffs.

Does Net Billing Reduce Solar Benefits?

Not necessarily.

Solar still gives major advantages:

  • 60% – 80% saving on monthly bills

  • Protection against rising tariffs

  • Energy independence

  • Long-term asset creation

  • Increased property valuation

Even with a 4-year ROI, the earning window remains 20+ years, which is financially excellent.

Why System Design Matters More Now

Under net billing, correct system sizing is critical.

A professional company should analyze:

  • Load profile

  • Appliance usage timing

  • Sanctioned load limits

  • Expected export volume

  • Battery integration feasibility

Oversizing solar systems may reduce profit under net billing. Smart, engineering-based design can still deliver a fast ROI.

FOX ESS inverter for 5KW solar setup

MFES Solar Energy offers:

  • Professional system design under 2025 regulations

  • Realistic ROI forecasting

  • Net billing approval support

  • Engineering-based solutions

  • Tier-1 solar equipment

  • After-sales maintenance

Why clients trust MFES:

  • Transparent guidance

  • Policy-compliant approach

  • Hundreds of residential & commercial installations

  • Local Lahore expertise

  • Guaranteed performance delivery

MFES Solar Energy continues to lead in Lahore because the company focuses on long-term customer benefit—not sales gimmicks.

Conclusion

The shift from Net Metering to Net Billing represents an important milestone in Pakistan’s renewable energy development. While ROI has increased from two to four years, solar remains a financially strong, clean, and reliable investment for the future.

With proper guidance, smart engineering, and policy-compliant system design from MFES Solar Energy, consumers can continue to enjoy long-term savings, energy independence, and sustainability benefits.

Contact MFES Solar Energy

📍 Plot 188, Opposite Expo Center Gate #3, Johar Town, Lahore
📞 0300-1599957 | 0314-3072721 | 042-31357272
🌐 www.mfes.com.pk
📧 info@mfes.com.pk
📘 facebook.com/MultifunctionalEngineeringSolutions